London sex shop owners set to claw back £1m in unlawful licensing fees

Sex shop owners in London could claw back £1million in licensing fees after winning a High Court battle yesterday.

A sign pointing to a sex shop in Soho, London (Picture: Alamy)

A judge ruled that licence fee income was unlawfully used by Westminster council to take enforcement action against illegal sex shop operators.

Mr Justice Keith said a recent European directive did not permit a ‘reasonable’ licence fee to include the costs of enforcement.

The ruling was a victory for Simply Pleasure Ltd and other long-standing licensees of shops in Soho, Covent Garden and the West End.

But the council said it will appeal, insisting enforcement against the illegal sex trade was a ‘proper use of public money’ and also benefited legitimate operators.

Tony Devenish, Westminster council’s Cabinet member for licensing and public health, said: ‘Westminster City Council has always maintained that the use of licence fee income to enforce against illegal sex shops is a proper use of public money, protecting the quality of life for our residents and visitors, including the global reputation of London.

‘Enforcing against the illegal sex trade actually benefits those who are legitimate operators in the sex industry.

‘With millions of extra visitors about to descend on London to celebrate the Jubilee and Olympics, it is critical people see the best face of our city.’

The judge added: ‘When people of my generation hear the word Soho, they tend to think of seedy clubs and illicit sex.